OIE reveals that exports of industrial goods have slowed down, putting pressure on the MPI index in July, which shrank 4.43 percent, adjusting this year's forecast. The index will shrink 2.8-3.8 percent and industrial GDP will shrink. 1.5-2.5 percent, although private consumption continues to expand well. Domestic investment has a tendency to expand. Recovery of the tourism sector and has political clarity
Mrs. Worawan Chittarun, Director of the Office of Industrial Economics (OIE), revealed that the Industrial Production Index (MPI) for July 2023 was at 91.14, a decrease of 4.43 percent compared to the same period last year. The capacity utilization rate was at 58.19 percent as a result of industrial product exports continuing to decline. After the world economy slowed down due to decreased purchasing power in the world market. Affecting the industrial sector Especially those that produce mainly for export. Including farm income in June 2023, it still shrank by 1.1 percent, contracting for the third month in a row.
This reflects purchasing power from the agricultural sector that continues to decline. However, the El Niño phenomenon must still be monitored. That causes the amount of rain in Thailand to tend to be lower than normal. and has an effect on Thai midstream and downstream operators. However, the domestic economy is still driven by the tourism sector that helps support domestic consumption and spending. After the industrial production index produced to meet domestic demand continued to expand by 0.7 percent.
Exports of industrial goods (excluding gold, weapons, tanks, and aircraft) were valued at US$16,969.70 million, a decrease of 1.3 percent compared to the same period last year. The industry that had a positive effect was automobiles, which grew by 5.34 percent. This follows the expansion of automobile exports, which increased by 30.1 percent from the same period last year. The export market has increased in Asia, Oceania, the Middle East, Africa, Europe, and Central and South America. Domestic car sales decreased by 8.8 percent due to high levels of household debt. As a result, financial institutions have become more strict in granting credit. Including interest rates that are likely to increase, affecting domestic demand, while oil refining Expanded 4.99 percent from jet fuel, cooking gas, and gasohol 91 in line with tourism that continued to expand. Iron and steel Expanded by 7 percent. 11 from hot rolled steel sheets, steel pipes, hot rolled steel sections and round steel bars It adjusted positively for the first month in 19 months after product prices improved in line with the decrease in the amount of imported steel.
“After the first 7 months of 2023, the Manufacturing Production Index (MPI) contracted by 4.54 percent, resulting in the OIE revising its estimates for the MPI index for 2023, expected to shrink by 2.8 – 3.8 percent. ) The industrial sector in the first half of the year 2023 contracted by 3.2 percent, making it expected that in 2023 it would shrink by 1.5 - 2.5 percent, with pressure from the global economic slowdown. Energy prices held high In addition, financial sector problems of different countries, geopolitical conflicts. Climate change affects agricultural productivity. Interest rates remain high Affecting the production costs of entrepreneurs and high level of household debt. Domestic investment Both the private and public sectors have an increasing trend of growth. Recovery of the tourism sector and political clarity,” Ms. Worawan said.
The main industries that contributed to the MPI in July 2023 compared to the same period last year were motor vehicles, refined petroleum products. expanding in line with basic iron and steel tourism It expanded for the first time in 19 months after domestic steel buyers reduced steel imports. and use domestically produced steel instead. Sugar expanded due to higher consumption demand from both the household and tourism sectors, table ingredients. expanding from export markets to the United States and other regions of the world, including domestic demand after tourism continued to expand.
Source: Thai News Agency